Lithium Australia to produce lithium-ion cathode powder

Lithium Australia NL (ASX:LIT) has finalised its acquisitionof advanced cathode material production technology, acquiring 99.7% of theequity in Brisbane-based technology company - the Very Small Particle Company (VSPC).

Cathode powder producer, VSPC, has spent 14 years andapproximately A$30 million developing some of the world's most advancedmanufacturing techniques for the production of cathode materials. Thesematerials are critical components of lithium-ion batteries, that's experiencingburgeoning consumption driven by rapidly increasing demand for EVs and consumerelectronics. The advanced battery materials being developed by VSPC are alsoapplicable to green energy solutions, including as back-up for sources ofrenewable energy.

Since the takeover was laid out in February, time-criticalservice agreements have been negotiated, recruitment of technical and operatingstaff has commenced, and service agreements have been arranged with universitiesto support the project's technical demands.

And now, plant inspections and servicing are underway, andequipment upgrades are being evaluated in preparation to resume production inJuly 2018.

The VSPC facility is a 2 to 4 tonnes-per-annum pilot plantthat incorporates an integrated laboratory, coin-cell production facility andbattery-testing equipment.

LIB cell assembly area inside VSPC's laboratory:

Overall this is an earlystage play and as such any investment decision should be made with caution andprofessional financial advice should be sought.

LIT Managing Director Adrian Griffin said, "Recommissioningthe VSPC pilot plant is a challenging task, but many of the past scientific andoperating staff have made themselves available to ensure success. We welcometheir assistance and participation in our plan to provide the world's batteryproducers with the best available cathode materials."